DSM in China JV
June 9/Yixing, China/Press Release -- Royal DSM, the global Life Sciences and Material Sciences company, and Yixing QianCheng Bio-Engineering Co Ltd announce that they have closed a joint venture agreement for the enzyme activities of QianCheng, creating a new company DSM (Jiangsu) Biotechnology Co. Ltd.
Yixing QianCheng Bio-Engineering Co Ltd, a privately held biotechnology company, is located in Yixing, Jiangsu Provence. Yixing QianCheng Bio-Engineering Co. Ltd. has been active on the Chinese domestic market since 1993 with a portfolio of food additives for use in a variety of food and food related applications.
Through this joint venture, DSM Food Specialties reinforces its global position in food enzymes. The global market for enzymes amounts to 2 billion euros and is growing by 6-8% per year. The Chinese market for food enzymes is one of the worlds largest and is experiencing growth rates far above the global average.
Dr. Weiming Jiang, DSM China president, noted, “This partnership in China fully fits with our strategy DSM in Motion: driving focused growth. DSM will continue its strong focus on China to achieve market-driven organic growth enhanced by acquisitions and partnerships. In the context of China 12th Five-Year plan, we expect to work with more local partners in biotechnology.
Lars Asferg, director of the business unit Enzyme Solutions, DSM Food Specialties, said, “This joint venture provides DSM with a strong enzyme operating platform in Chinese and Asian markets. Food is a local business and you need to be present in your customers markets to create innovative solutions to meet the specific local preferences of our customers. The Yixing enzyme plant will expand the DSM global manufacturing networks on the Asian continent. The plant will be upgraded to meet the DSM standards for quality and traceability as laid-out in our Quality for Life commitment”
Wu, general manager, Yixing QianCheng Bio-Engineering Co. Ltd., added, “We are pleased to enter this partnership with a global leader like DSM. This joint venture will help us in the Chinese food and beverage industry with solutions of guaranteed quality and consistency”.
The joint venture has been finalized, with DSM being the majority shareholder with 85% of the shares of DSM (Jiangsu) Biotechnology Co. Ltd. Yixing QianCheng Bio-Engineering Co Ltd will own the remaining 15% of the shares. Further terms of the agreement will not be disclosed, as agreed between the parties.
From the June 9, 2011, Prepared Foods' Daily News.